Investing.com - Oil prices turned higher on Monday, amid hopes the Organization of the Petroleum Exporting Countries will cut output to support the market when it meets later this week.
On the ICE Futures Exchange in London, Brent oil for January delivery tacked on 56 cents, or 1.26%, to trade at $45.42 a barrel during U.S. morning hours. On Friday, prices declined 60 cents, or 1.32%.
Elsewhere, crude oil for delivery in January on the New York Mercantile Exchange rose 59 cents, or 1.41%, to trade at $42.30 a barrel. Nymex futures tumbled $1.33, or 3.09%, on Friday as concerns about a global supply glut continued to pressure prices.
The Organization of Petroleum Exporting Countries will meet on Friday to review their output strategy. Iran is expected to demand that Saudi Arabia cut back from production levels of more than 10 million barrels a day, but many say the kingdom is unlikely to change its approach.
Oil prices are down almost 10% so far in November, amid uncertainty about how quickly the global glut of crude is set to shrink. The possibility of higher interest rates in the U.S., a broadly stronger U.S. dollar and slower global economic growth, especially in China, further weighed.
Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by OPEC last year not to cut production in order to defend market share.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.12 a barrel, compared to $3.15 by close of trade on Friday.
In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls report for November, the last jobs report before the Fed decides on interest rates at its December 15-16 meeting.
Market players will also pay close attention to a speech by Fed Chair Janet Yellen on Wednesday and congressional testimony on Thursday.
The outcome of Thursday’s European Central Bank meeting will also be in focus amid speculation the central bank could ramp up its monetary stimulus program.